Workday narrowly beat Wall Street estimates for the fourth quarter, posting 21.6% revenue growth.
The company, which makes cloud-based ERP and financial software, posted fourth-quarter revenue of $1.38 billion. Subscription revenue was $1.23 billion, up 22.2% from a year ago. Workday reported earnings of 78 cents per share.
Wall Street expected Workday to report fourth-quarter revenue of $1.36 billion on non-GAAP earnings of 71 cents per share.
For the full year, Workday reported revenue of $5.14 billion, an increase of 19% over 2021. Subscription revenue increased 20% to 4.55 billions of dollars. Non-GAAP basic and diluted net earnings per share were $4.20 and $3.99 for the year.
“We closed the year with another strong quarter that saw a continued acceleration of our business, including a growing global workforce and a relentless focus on employees, customers and innovation,” said Aneel Bhusri, co-CEO of Workday.
“We continue to see growing demand for our wide range of finance and HR solutions, as we help some of the world’s largest organizations – and over 60 million users – navigate the changing world of work. This momentum, along with our employees’ continued commitment, gives me great confidence in the opportunity ahead.”
Workday announced in November that it planned to acquire VNDLY, a cloud contractor and vendor management provider, for $510 million in cash.
With this move, Workday aims to merge optimization tools for internal and external salaried, hourly, casual and outsourced workers. Workday said it aims to support talent management, cost, scheduling and compliance in a holistic approach.
Barbara Larson, Workday’s chief financial officer, said the company is raising its guidance for fiscal 2023 subscription revenue to be in the range of $5.53 billion to $5.55 billion, which represents a 22% year-over-year growth.
“We are also raising our non-GAAP operating margin guidance for fiscal 2023 to 18.5%. Our market position has never been stronger, and investing to support long-term growth remains our priority,” Larson said.